Property Letter – 19th December 2006.

Vicky and I wish you all the very best for the festive season, but also for the year ahead. May 2007 bring us all a balanced mixture of health and happiness, peace and prosperity.

Vicky and I also want to use this opportunity to thank you for the support many have given us. Some of you are investors, some are future investors, and some of you are interested observers and have given us all sorts of useful feedback, referred friends and contacts to us, or us to them. We appreciate it very much, and hope that some good rubs off on all of you – that benefits are mutual – as they say “what goes around comes around”.

We are in Cape Town for Christmas with the family, and will be back in France in January.

2006 has been a great year and our (combined) property portfolio in Cannes has expanded and improved. Those of us who have already been able to invest have seen steady growth in the market and the value of our investments increase (probably 18%). We have been able to buy some really good apartments and villas for our investors, fine tune our management and administration of them, and take major steps in the rental field, the results of which will reflect positively on our investors’ income statements in 2007. I’m not making bold promises; I’m just feeling quietly confident of steady improvement. Both property management and rentals management are long-term processes, and we’re in for the long term. The finding of the properties to invest in, the financing of them, and the selling on are relatively short-term events.

Rentals:

Lao has made constant improvements to his websites – “world class” websites I must add – and I urge you to go in and have a browse. Look at the apartments we have on offer now, and consider that most that you see on the site are owned by someone receiving this letter, and in many cases someone you know. Look at how the apartments are presented, and get a feel of what I’m talking about when I write these letters, if you haven’t already.

Also have a look at www.everythingcannes.com while you are at it. This more recent company set up by Lao works in parallel serving a different market and all of our properties are featured on this site too. Between them Azur-Online and Everything Cannes are first and second in terms of rankings, traffic and placement on the search engines wordlwide.

Our team of investors’ apartments have priority on the sites, so they appear on any screen (your screen too if you look) with a green star. Green star apartments always get rented first by our staff, will always show first on any search listing, and are available for automatic booking on the web, whereas red star apartments are available only on request.

The bottom line is that our investors get special treatment every time! That doesn’t make them rich or ensure 100% occupancy – life’s just not like that – but it does very definitely put them ahead of the pack.

Interest rates today:

3 month euribor – 3.6%

12 month euribor – 3.87%

TEC 10 – 3.73%

Exchange rates today:

1 euro = 0.6745 pounds

1 pound = 1.4826 euros

1 euro = 1.3335 US dollars

1 euro = 9.1763 zar (South African rand)

I only want to show you one tiny property today, and as usual I will include it at the end for anyone who’s interested. However I want to remind you – “please don’t hesitate to get in touch with me directly”. Many do.

One last time from all of us, to all of you – we wish you a Happy Christmas, great holidays, and a fabulous new year.